Why I Think You Should Continue To Sit On Your Hands
I’m Dave Landry and I approved this column.Â
On Friday, the Nasdaq lapped higher on the Employment
Report and generally worked its way higher. However, it found its high in early
afternoon trading and then drifted sideways to lower. Finally, it sold off hard
going into the close. Although it closed poorly, it still managed to
finish above its 50-day (just barely) and 200-day moving averages.Â
The S&P put in a similar performance. This action puts
it back above its 50-day moving
average.Â
So what do we do? When a market sells off
late in the day, it suggests that traders aren’t willing to “take ’em
home.” This lack of commitment has been typical recently and keeps the
market choppy. The good new is, the fact that the indices were able to hold on
to a sizable portion of their gains has some sectors back in potential
transition mode (i.e. bottoming). However, one has to wonder if there will be
any follow through selling from Friday’s late-day weakness. The bottom line is
that so far, I still don’t see any reason to get excited about this market
(either way). This action continues to be confirmed by a lack of meaningful
setups. Therefore, until this market can show signs of following though, the
best action still remains no action.Â
 No setups tonight (Friday).
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
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